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Life Estates A
life estate is an interest in land that is limited in duration to the life of
an individual either the owner of the estate or another. The owner if
a life estate is called a life tenant. He or she is entitled to
exclusive possession of the property during the existence of the life estate,
though the life tenant owes certain obligations towards the future owner of
the property, also called the remainderman. Ex:
Dad, a widower, remarried late in life and did not put new wife on title to
his home. In his will he leaves the residence to New Wife for life,
the remainder to my son Joe. This mechanism allows Dad to provide a
home for New Wife for the rest of her life, while still passing the family
home to his natural heir, his son. Life
estates may be created in a deed, but most commonly they are created in a
will, as is the case in the above example. There is no specific
requirement for language, just that the intention of the grantor to create a
life estate must be expressed. Some
other examples of language creating life estates: To
X for life, the remainder to Y. Above example. To
X for the life of Z, with the remainder to Y. -- Life estate pur autre
vie (for the life of) Z, upon whose death the remainder passes to Y. To
X, but reserving a life estate in the grantor herein. A life estate
retained by grantor, who conveys only a remainder interest to X. Why
this is of interest to a title person, and could be to you for a couple of
reasons: (1)
Both the life estate and the interest of the remainderman are alienable,
meaning each can convey their interest to another party. Each may only
convey what they own, so a purchaser who buys from the life tenant only
receives a life estate and a purchase who buys from the remainderman only
receives the remainder interest. However, should a purchaser acquire both
the life estate and the remainder, the doctrine of merger will apply to merge
the two estates and recreate a full fee estate in the purchaser. (2)
Both a life estate and a remainder estate can be mortgaged.
(3)
A life tenant must pay taxes on the property during their tenancy. (4)
A life tenant may make improvements upon the land, and may do so without
interference from the remainderman. Anyone lending money for the
construction of those improvements may not charge the remainderman. Any
questions can be directed to Benchmark Title at 618-239-3750. Please feel
free to call or email:
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